If I understand correctly the "people around you" is decided purely by distance. In that case is there anything done to avoid seemingly nonsensical conversation

If I understand correctly the "people around you" is decided purely by distance. In that case is there anything done to avoid seemingly nonsensical conversations for a random observer? With this I mean if two people are in distance close enough to chat and the third one (the "observer") is only in range to one of them would the observer only see half of the conversation.